SATURDAY", JULY 1, 1967 THE MICHIGAN DAILY PAGE ' SATURDAY, JULY 1,1967 THE MICHIGAN DAILY *S 4oti Election Win For Military Still Assured Chief of State Lieu Heads Team After Council Prevents Split SAIGON (R)-A military presi- dential ticket headed by Chief of State Nguyen Van Thieu, with Premier Nguyen Cao Ky in the No. 2 spot, emerged from political infighting yesterday. Consolidating rival candidacies, with unified backing of the 600,- 000- man armed forces which con- w trol communications and the bulk of South Vietnam's transport facilities, Thieu and Ky seem cer- tain to outdistance civilian candi- dates in the election Sept. 3. That electon s ntended to re- store civilian government. Ky Pressured Out The race took on new meaning as Ky, who announced his candi- dacy for president May 12, bowed out under pressure within the Armed Forces Council on behalf of Theiu, who tossed his cap into the ring June 14. The council ap- plauded. A uThe State Department declared full U.S. neutrality in the Viet- namese presidential race Friday and firmly denied news dispatches which alleged that Washington had taken sides. The White House meanwhile kept silence. "Everyone was surprised, includ- ing the participants,' a high U.S. official said. A Vietnamese government source said Ky, in withdrawing and agreeing to run for vice president, was making a patriotic sacrifice to avoid'splitting the armed forces. But is was apparent that the premier, riding high with a month's head start on Thieu, had lost so much support among the 50 or so ruling generals that he had to take a back seat. Ceremonial Head Thieu, 44, is a lieutenant general in the army. He is a native of cen- tral Vietnam and a Roman Cath- olic, the religion of a small but in- fluential minority. Though his post as chief of state is largely ceremonial, he, technically out- ranks Ky, the administrator. Ky, 36, has run South Vietnam's government for two years. He is a vice marshal who still commands the air force. He is a native of North Vietnam and a Buddhist, the religion of most Vietnamese. The importance of the military backing stems from the fact that, with about a dozen entries, the ticket with the most votes will win, regardless of whether it gets a ma- jority. No other candidates have a bloc so large as the 600,000 that ;resumably will be solidly behind Thieu and Ky. The servicemen represent more than 10 per cent of South Viet- nam's estimated 5.2 million voters. The struggle between Ky, came to a climax after three days of sometimes heated discussion among the ruling generals, who almost to a man, were worried that the com- petition would split the military. The meetings were highlighted by -shouting matches between the two men. Several propositions were kicked around, including the for- mation of a caretaker government to run South Vietnam while Ky an Thieu battled for votes. With about 40 generals on hand at the showdown, Ky finally agreed to run with Thieu. Ky's suport apparently had suf- fered because. of a series of com- plaints that he was using govern- ment agencies in his campaign. ets om Vice Viet. Presidential HINDERS DEFERMENT STACKING: Johnson Signs Draft Bit Ends Use of Tests, Rank Army Ticket * * * * * Admit Ship Bombing Possible Associated Press SOVIET PREMIER Alexei Kosygin (center) will go from talks with Cuban Prime Minister Fidel Castro (right) to talks with French President Charles De Gaulle. An interpreter aided communica- tion between the two Communist leaders today in Havana. UN Delays Mideast Resolution; Kosygin, de Gaulle To Parley WASHINGTON M)-U.S. war- planes may have bombed a Soviet cargo ship in Haiphong harbor while attacking nearby North Vietnamese anti-aircraft positions, the Pentagon said yesterday. The incident-the second in less than a month-drew a "resolute protest" from Moscow and a Soviet demand for "strict punishment of the guilty." "Although pilots are under in- struction to avoid Soviet ship- ping," the Defense Department said, "it is possible that certain of the ordnance directed aththe anti-aircraft site fell on the ship." It said the air defense installa- tion under attack was about 500 yards from the ship. The Pentagon ordered an in- vestigation. It avoided any flat statements that might boomerang, as happen- er June 18 when it had to retract a denial that American planes had struck another Soviet freighter at a small port northeast of Hai- phong. Moscow reported one killed and several wounded in this epi- sode. The" Soviet government identi- fied the ship involved in the latest incident as the Mikhail Frunze. It said the merchantman was dam- aged but made no mention of any death or injuries to Soviet crew- men aboard. The Russians report- ed the ship struck June 29 by an anti-personnel bomb of the type often used against anti-aircraft batteries. At the same time, the official East German news agency ADN claimed that American bombers had hit four merchant ships while attacking oil installations near Haiphong. It identified the ships as the Frunze, the British vessel King- ford, the Italian ship Bertain, and a Chinese craft called Kong Ky157. All were damaged, ADN said. The Pentagon's statement made no mention of any vessel other than the Soviet. The Pentagon said that com- manders. have been asked to ex- amine flight paths taken by the iAmerican warplanes and post- strike photographs to gather all possible information. U.S. military sources said the Navy planes, based on a carrier in the Gulf of Tonkin. were using cluster bombs against heavily con- centrated anti-aircraft guns. The cluster bomb is anything but a precision weapon. It is chief- ly an anti-personnel projectile and achieves its results by spraying hundreds of ball-bearing size pel- lets over wide areas. They are used not only against anti-aircraft sites but against other "thin-skinned targets" such as trucks and light armor. SAN ANTONIO W)-President Johnson signed into law yester- day a four-year extension of the military draft and changed stu- dent deferment rules. Through an executive order, Johnson revised the basis for un- dergraduate deferments, restrict- ed deferments for graduate stu- dents and sharply limited "the pyramiding" of deferments-get- ting one after another to avoid military service. The order also includes standby authority for the induction of 19-year-olds first, but this will not be used immediately. The former draft law had per- mitted drafting of 19-year-olds, but in practice older men up to 25 had been taken first. The Senate and House, in com- mittee reports, had approved the shift to the earlier age group. The complex executive order scraps the old system of basing undergraduate deferments on test scores and class standing. The new rules will grant deferments to those who satisfactorily pur- sue fulltime studies. These defer- ments will continue until the young man gets his bachelor's degree, drops out of school or reaches the age of 24-whichever comes first. That provision had been written into the law by Congress, which rejected a presidential advisory commission's recommendation that educational deferments be ended. The individual thereafter would not be eligible for other types of deferments except for occupa- tions or graduate study deemed necessary to the national interest or because induction would im- pose an extreme hardship on de- pendents. Deferments will be given for graduate study of medicine, dent- istry, veterinary medicine, osteo- pathy and optometry. Students who have been accept- ed for graduate study in any field will be given a one-year grace period before they are eligible for induction. The same applies to those already enrolled in graduate schools. The executive order also will permit women to serve on local draft boards and will limit service on local boards and appeals Raise Dept. Ceiling; Current IDeficit Up By The Associated Press The permanent ceiling on the national debt was raised by legis- lation signed by President John- son yesterday from $285 billion to $385 billion, with a temporary in- crease to $365 billion for fiscal 1969 which starts a year from Sat- urday. The debt yesterday stood at $327 billion, covered by temporary in- creases which have been sought by the administration and granted by Congress regularly. In the absence of new legisla- tion, the limit would have reverted at that time to the old permanent figure of $285 billion, and the gov- ernment still would have been far in the red. The Treasury would have been unable to pay bills and meet gov- ernment payrolls in about two weeks, officials said. Beside the $22-billion imme- diate increase, the new ceiling provides an automatic $7-billion increment in a year, to be renewed annually and to cover seasonal fluctuations in the debt. The increase is the second this year allowed by Congress to enable the Treasury to finance continuing budget deficits. The limit had been increased March 1 from $330 bil- lion to $336 billion. Yesterday the federal govern- ment ended a fiscal year with its second-highest deficit in the na- tion's "peacetime" history. The deficit is expected to grow even larger in the fiscal year which begins Saturday even if Congress raises taxes to help pay for the Vietnam war and stem in- flation. Although the tabulation of final tax and spending figures won't be completed for another three weeks, Treasury officials estimated the year-end deficit at about $11 billion, exceeded only by those of World War I, World War II and fiscal 1959. Even the deficits during the Korean War failed to exceed the current one. The latest estimate for the fiscal year which begins Saturday is a deficit of about $13.6 billion with- out any major escalation of troop ;trength in Vietnam. The Vietnam war is largely re- sponsible for the heavy deficits in both the old and the new fiscal years. Lower-than-expected tax collec- tions also helped raise the deficit from the $9.7 billion figures by the administration last January. Officials now expect tax collec- tions to fall abou $500 million below their earlier estimates to $116.5 billon. Over-all spending of about $127.5 billion, about $800 million more than expected last January, raised the anticipated deficit to $11 billion. boards to 25 years, with no one serving after age 75. It rejected the presidential com- mission's recommendation that the local boards be consolidated into 300 to 500 units, with actual registration and classification of youths handled by federal em- ployes. The new law also rejected a lot- tery-type method proposed by the commission for selecting youths to be called and determining the order of their induction. Governors Discourage Pre-Convention Pledges By The Associated Press The United Nations General Assembly yesterday postponed a showdown on compromise solu- tions seeking withdrawal of Israeli troops from former Arab territory as Soviet Premier Alexei Kosygin and French President Charles de Gaulle prepared for a today meet- ing on the crisis. With support of the United States, 18' Latin-American coun- tries submitted the newest resolu- tion, setting no time limit for an Israeli withdrawal. It called for an end to the state of belligerency by all sides and a resort to peace- ful settlement of all disputes. In view of the Latin-American proposal, Denmark and other countries dropped plans to submit their own compromise resolution. Soviet Foreign Minister Andrei A. Gromyko showed up for the afternoon session of the assembly. He told reporters the nonaligned resolution was a good one. The Israelis remained steadfast in their opposition to the non- aligned resolution despite the changes. They were inclined to look with more favor on the Lat- in-American proposal, but there was no official Israeli comment. At the end of the second week of the emergency special session the general debate was over, and the delegates turned to consider- ation of resolutions. Since Soviet Premier Kosygin stopped in Paris June 16 on his way to the United Nations and talks with President Johnson, De Gaulle has put aside his middle- road stand. To the cheers of the French Communist party and the con- sternation of some of his most faithful followers, De Gaulle pub- licly accused Israel of firing the first shots in the June war with the Arabs. He also repeatedly re- minded Israel that France does not recognize any claim to Egyp- tian, Jordanian and Syrian terri- tory occupied by Israeli troops. De Gaulle's present posture on the Mideast can only improve the already cordial atmosphere be- tween him and his guest when they sit down at Elysee Palace as Kosygin stops off on his way home from talks in Havana with Prime Minister Fidel Castro. But whether they will be able to do anything to push the Mideast im- passe off dead center seems doubtful. JACKSON, Wyo. (P)-Republi- can governors urged their party yesterday to avoid formal advance commitments to presidential can- didates. They said the move would pro- mote party unity and produce an, active national campaign for the nomination. They exempted states with bind- ing presidential primaries and for Republican favorite-son candi- dates. Impact Unclear The political impact of the res- olution was unclear. It came after two days of inconclusive corridor talk about the 1968 race. The Jackson conference pro- duced no gubernatorial consensus on a candidate for-1968. But New York Gov. Nelson A. Rockefeller and Rhode Island Gov, John H. Chafee were active- ly pursuing support for Gov. George Romney. They won no an- nouncements of endorsement. And the resolution on conven- tion delegates was the governors' only formal action on the 1968 race. Gov. David F. Cargo of New Mexico called the resolution "an exercise in the niceties" he ex- pects to have little effect. Chafee, vice chairman of the conference, said he read into the resolution no advantage or dis- advantage to any potential can- didate. Gov. Daniel J. Evans of Wash- ington said he thinks the resolu- tion will have some effect in about 35 states which are not re- quired by law to bind their dele- gations or have no favorite-son candidates. Chafee said California Gov. Ronald Reagan and Romney, two absentees with potential stakes in the governors' action, were not consulted about the resolution. The governors can enforce their proposal only through persuasion. While it would seem to call for a wide-open nomination campaign, convention delegates are as often bound by personal pledge as by state instructions. The governors will confer again in Florida next December. World News Roundup U By The Associated Press BONN, Germany - Chancellor Kurt George Kiesinger has can- celed' his July trip to the United States because of what a govern- ment spokesman described yester- day as "differences within the Cabinet on financial que stions." The spokesman said President Johnson had been informed of the cancellation and "expressed his re- grets and understanding." Kiesinger had planned to hold talks in Washington with Johnson July 7-8. Both expressed hope that a new date could be set soon. Kiesinger was to have been ac- companied by Foreign Minister Willy Brandt. Brandt also canceled his trip, indicating there were ma- jor differences within the coalition government. VACATION CITY - Whitney M. Young Jr., American Negro civil rights leader, told Pope Paul VI Wednesday at an audience that the Christian churches have done too little for too long in the cause of improved race relations. Young said later he had ap- pealed to the Pope for leadership in "a crusade to change men's hearts" and added: "The Pope indicated that he was accepting the challenge4" Young, executive director of the National Urban League, saw the Pope for a few minutes after the weekly papal general audience in St. Peter's Basilica. * * * * NEW YORK - The American chemical, textile and leater in- dustries yesterday criticized the "Kennedy Round" tariff cuts. They felt that the results would be harmful to them by opening the doors to more imports without equal export benefits. S. Stewart Graff, secretary of the Synthetic Organic Chemical Manufacturers Association, said newly disclosed details of the agreements "confirm our indus- try's worst fears regarding the one-sided bargain reached by our negotiators in Geneva." HELD OVER THIS FILM HAS TO BE SEEN TO BE BELIEVED! in the Spirit of '67 discount records, inc. announces A GALA SALE ON OUR ENTIRE STOC K' "IT IS IMPOSSIBLE NOT TO BE INTRIGUED! 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